The last five weeks have been full of ups and downs for the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO), but it still managed to carve out an almost 2% gain during the period.
Whilst the index fought hard for this small gain, one share in particular didn't have to do much fighting at all. During the same period this share managed to climb a massive 35% and I believe it could still climb even further from here.
The company which I am talking about today is Australian kitchen appliance manufacturer Breville Group Ltd (ASX: BRG).
The catalyst for the share price increase was its strong half-year report. The company reported a 12.7% increase in revenue to $331 million compared to the previous year, and bottom line growth of 4% to $31 million.
Although these results were not earth-shattering, the company had suffered from a sell-off in the weeks leading up to the earnings report. Clearly the better-than-expected report has helped lift the share price.
Despite the 35% climb in the share price in the last five weeks, its shares are still only up around 4% for the year. I believe that thanks to the housing boom there is plenty more upside left for investors to profit from.
Just like Harvey Norman Holdings Limited (ASX: HVN), Nick Scali Limited (ASX: NCK), and Fantastic Holdings Limited (ASX: FAN), I believe Breville will benefit from the strong demand for furnishings that the housing boom has created.
Its kitchen appliances are high quality and distributed far and wide through retailers such as David Jones and Myer Holdings Ltd (ASX: MYR).
The company's exposure to the United States is another key reason why I expect it to perform well this year. In its half-year results the North American segment produced an increase in both revenue and earnings of 30.8% and 39.9%, respectively.
With many saying the Australian dollar could be on its way down to US 65 cents later this year, there is a strong chance Breville could report bumper earnings in its full year report thanks to its North American segment.
Even though its share price has risen rapidly, it is still almost 5% off its 52-week high. With analysts expecting earnings to grow by 9% per annum through to 2018 (according to CommSec), I believe there is every chance the shares will set a new 52-week high in the next 12 months.
With all the stars potentially aligning for Breville, I believe it is a compelling investment today.
